• Life and Annuity Operating Revenue Rises 12% to Over $10 Billion
• Manufacturing and Distribution Are Keys to Success

NEW YORK, April 4, 2002 — In 2001, New York Life Insurance Company's Life and Annuity business achieved exceptional results with operating revenue of $10.2 billion, an increase of 12% over 2000. Sales of life insurance products soared 41% and annuity products gained 6%. New York Life's agency system increased sales of life products for the fifth consecutive year, to $707 million in 2001, an increase of 17% over 2000.

Fred Sievert, New York Life vice chairman and head of its Life and Annuity Operation, said, "New York Life achieved a 41 percent year-over-year increase in domestic life insurance sales, due to our ability to develop and deliver high-quality, market-responsive products through a corps of skilled career agents, independent brokers, and our partnership with AARP. By reducing the time-to-market for new, competitive products, and remaining focused on supporting our agents and brokers in the middle and advanced markets, we were able to produce exceptional growth in a year that challenged others in the industry. While the industry experienced a slight increase in life sales and declining annuity sales in 2001, New York Life experienced phenomenal growth in life sales and its annuity business grew more than $250 million."

Life Insurance Leadership is Validated by Third Parties

In 2001, New York Life achieved the number one rank in market share for new life premium, according to the life insurance marketing association that compiles market share data from among the 84 largest insurers*. New York Life also extended its lead in the number of agents qualifying for the Million Dollar Round Table, the industry's most prestigious agent organization for sales and customer service. This marked the 47^th consecutive year that the company led the industry in qualifying agents, a validation of the strength of an agency system that is one of the company's key competitive differentiators.

New Products and Enhancements Help Drive Success

For more than 156 years, New York Life has been developing life insurance and other financial services products. Its continued commitment to product innovation contributed to sales in 2001. The newly launched Pinnacle Series of life products designed for the estate planning and business succession market, and the attractive Single Premium Variable Universal Life (SPVUL) product helped the company achieve impressive sales figures for the year. Enhancements to existing products also played a role in the surge in new product sales.

Through AARP, Company is Largest Direct Marketer of Life Insurance in U.S.

In 2001, Group Membership maintained its leadership position in the association marketplace and was the largest underwriter of professional association life insurance programs in the U.S. New York Life covers 775,000 lives in 450 associations across the country. The company's AARP Operation, the exclusive provider of life insurance products to members of the American Association of Retired Persons, insures over 660,000 members with operating revenue reaching $262 million, a 14% increase in 2001. Through its relationship with AARP, New York Life is the largest direct marketer of life insurance in the U.S. Meanwhile, New York Life's long-term care insurance operating revenue rose 18% to $60 million on sales production by the agency force.

Corporate Net Income Exceeds One Billion Dollars

For the second consecutive year, New York Life Insurance Company reported net income of more than one billion dollars. Net income in 2001 was $1.086 billion, compared with $1.205 billion in 2000. Operating revenue — comprised of premiums and fees — increased 11% in 2001 to $13.0 billion, compared with $11.7 billion in the prior year. The company's surplus and investment reserves — the funds that finance growth and protect policyholders — grew to $8.741 billion, representing one of the strongest capital positions in the industry.

*Source: LIMRA International. Sales survey based on new periodic premium, plus 100% of single premium.

New York Life Insurance Company, a Fortune 100 company, is the largest mutual life insurance company in the United States. The company's Life and Annuity business sells a full array of products including individual, bank- and corporate-owned life insurance, as well as a variety of immediate and deferred, variable and fixed annuities. Founded in 1845 and headquartered in New York City, New York Life and its affiliates offer life insurance, annuities and long-term care insurance. Through New York Life Investment Management, New York Life's affiliates provide institutional asset management, retirement plan and trust services and an array of securities products and services such as institutional and retail mutual funds.

Contacts:

Karen Finkston Payes
New York Life
(212) 576-5624

Mike Holloway
Edelman Public Relations
(212) 704-4532

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